SEZ full form, benefits, features of Special Economic Zone in India


A special economic zone (SEZ) is a special geographical region demarcated to encourage foreign investment and promote domestic economic activity

To encourage foreign investment and provide a competitive and hassle-free environment for businesses to flourish, the concept of Special Economic Zones (SEZs) was introduced in India, in April 2000. The objective was to offer a level playing field to all domestic enterprises to compete globally, with infrastructural support from the state and central governments. So, what are SEZs and how are they different from other manufacturing and business zones? Here is all you need to know.

 

SEZ full form and meaning

SEZ refers to Special Economic Zone, which is a special demarcated area or a geographical region that is considered as a duty-free enclave and has different economic laws than the rest of the country. While the objective is to attract foreign direct investments, the SEZ also attracts domestic companies, because of its infrastructural advantages. Some of the countries that have successfully implemented the SEZ policy are China, Poland, Philippines and Russia.

Financial policies related to taxation, trading and investment, customs and labour regulations, are implemented in order to encourage businesses in setting up their operations in the SEZ. India was among the first countries in Asia to recognise the effectiveness of the Export Processing Zone (EPZ) model in promoting export. The first EPZ was established in Kandla in 1965. To tackle the challenges of absence of world-class infrastructure and to attract larger foreign investments, the Special Economic Zone (SEZ) Policy was announced in April 2000. The SEZ Act 2005 and SEZ Rules came into effect from 10th February 2006.

 

SEZ Special Economic Zone

 

SEZ benefits

Special Economic Zones (SEZs) are set up to promote rapid economic growth in the country. The main objective including promoting exports of goods and services and encouraging investment from domestic and foreign sources. Infrastructure development, and creation of employment opportunities are among the significant benefits of special economic zones.

Among the main benefits of investing in SEZs in India includes tax incentives for businesses and entities operating in the region and improved infrastructure. It promotes the growth of foreign exchange earnings through exports new employment opportunities.

 

What is SEZ in India? Features of special economic zone

One of the main objectives of SEZs was enhancing foreign investment and promote an favourable environment for exports. SEZs are developed with world class infrastructure, including roads, transport, storage, etc. and attract foreign investors, thus leading to economic development.

  • Enterprises that set up their establishment in SEZs are entitled to incentives, which may include free electricity, water supply, subsidy on land prices, etc.
  • These economic zones are designated duty-free industrial parks, to be treated as foreign territory for trade operations, duties and tariffs.
  • Usually, no licence is required for import and businesses get exemption from customs duty, on import of capital goods, raw materials, consumable spares, etc.
  • SEZs may enjoy exemption from payment of sales tax and service tax on the sale or purchase of goods or services.
  • Any supply of goods or services or both to a SEZ unit is considered a zero-rated supply. In other words, supplies into SEZs are exempted from Goods and Services Tax (GST) and are considered as exports.
  • The important special economic zones features include employer-friendly labour laws. For example, since SEZ units are considered as ‘public utility services’, no strikes are allowed in such companies without giving the employer six weeks’ prior notice, in addition to the other conditions mentioned in the Industrial Disputes Act, 1947.

See also: A guide to the government’s GST login portal online services

 

SEZ rules

Under the SEZ rules, simplified procedures are established for development, operation, and maintenance of the Special Economic Zones and setting up units and conducting business. The SEZ rules also provide for single window clearance for setting up of a Special Economic Zone, setting up a unit in a SEZ, matters relating to Central as well as State Governments. Simplified compliance procedures and documentation are also set up with emphasis on self certification.

 

Types of SEZ

Special economic zones encompass Free trade zones (FTZ), Export processing zones (EPZ), Industrial parks or industrial estates, Free economic zones (FZ/ FEZ), Free ports, Bonded logistics parks (BLP) and Urban enterprise zones.

Mentioned below are the different types of special economic zones

  • Sector-Specific SEZ: Involved in manufacturing one or more good in a specific sector like electronic goods (land used 10 or more hectares), or one or more services (land used 100 or more hectares).
  • Multi-product SEZ: Involved in manufacturing multiple goods or providing multiple services in a specific sector or across different sectors. (land used 1000 or more hectares).
  • SEZ in a port/ airport; or for free trade and warehousing:  Involved in manufacturing of goods in two or more sectors, entailing trading and warehousing (land used 40 or more hectares).

 

Who sets up SEZs?

In India, most of the SEZs are set up through a collaboration between the state and central governments. However, any private, public or joint sector agency can also set up SEZs. State governments have a very important role to play in the establishment of these economic zones, as the proposals have to be approved by the local authorities initially, who should give their consent for providing basic infrastructure facilities to the delineated area, such as water, electricity, transportation, etc. Also, the statutory functions of maintaining these SEZs rests with the government. A unit approval committee is formed, which consists of a development commissioner, customs officer and a state government representative, who monitor the performance of SEZs.

 

List of SEZ in India

Name of SEZs in India Location
Visakhapatnam Special Economic Zone Visakhapatnam
Apache SEZ Development India Private Limited, Nellore Tada Mandal, Nellore District
Hetero Infrastructure Private Limited, Vskp Nakkapalli, Vishakapatnam
Divi’S Laboratories Limited, Vskp Chippada, Visakhapatnam
Brandix India Apparel City Private Ltd., Vskp Atchutapuram, Visakhapatnam
Jawaharlal Nehru Pharma City, Ramky Pharma City (India) Pvt Ltd, Vskp Parawada Mandal, Visakhapatnam
Mas Fabric Park (India) Pvt Ltd, Nellore Nellore
M/S Bhartiya International SEZ Ltd Nellore
Andhra Pradesh Special Economic Zone Atchutapuram, Visakhapatnam
M/S Apiic Ltd, Naidupeta Nellore
Parry Infrastructure Company Private Limited, Kakinada Kakinada
Sricity Pvt Ltd, Chittoor Chittoor
Iffco Kisan SEZ Nellore, AP
Dr. Reddy’s Laboratories Ltd Srikakulam
Apiic Ltd Village Annagi and Bodduvaripalem, Maddipadu and Korispadu, District Prakasam
Apiic, Madhurwada, Hill No 2 Visakhapatnam
Apiic Ltd (IT/ITeS) Madhurwada, Hill No 3 Visakhapatnam
Apiic It SEZ Kakinada Kakinada
Apiic Ltd & L&T, Keesarapalli Nakkapalli, Visakhapatnam
Rajiv Gandhi Technology Park, Phase-1 Chandigarh Chandigarh
Rajiv Gandhi Technology Park, Phase-2, Chandigarh Chandigarh
Lanco Solar Pvt Ltd Vill-Mehrumkhurd & Chawardhal, Chhattisgarh
Kandla Special Economic Zone KaSEZ, Kutch
Surat Special Economic Zone Sachin, Surat
Adani Mundra Port / Adani Ports Mundra
Surat Apparel Park Vans, Surat
Dahej SEZ Ltd (Pertains To DC, Dahej SEZ)
Synefra Engg & Const Ltd (Formerly Known As Suzlon Infrastructure Ltd) Vadodara
Jubilant Infrastructure Ltd Vagra, Bharuch
E Complex Pvt Ltd Amreli
Zydus Infrastructure Pvt Ltd Sanand, Ahmedabad
Euro Multivision Pvt Ltd Vill. Shikra, Tal Bhachau
Reliance Jamnagar Infrastructure Ltd Jamnagar
GiDC Apparel Park Ahmedabad Ahmedabad
Sterling SEZ Pvt Ltd (Pertains To DC, Sterling Ez)
Aqualine Properties Pvt Ltd. Gandhinagar Gandhinagar
L&T Ltd Vill Ankhol, Vadodara Vadodara
Tata Consultancy Services Ltd, Gandhinagar Gandhinagar
Gift Multi Service SEZ Gandhinagar, Gujarat
Electronic Park SEZ (Ehtp/IT/ITeS) Gandhinagar
Asf Insignia SEZ Pvt Ltd (Formerly Known As Canton Buildwell Pvt Ltd) Village Gawal Pahari, Tehsil Sohna Gurgaon, Haryana
Gurgaon Infospace Ltd, Gurgaon Gurgaon, Haryana
DLF Limited Gurgaon, Haryana
DLF Cyber City, Gurgaon Gurgaon, Haryana
Unitech Realty Projects Ltd Gurgaon, Haryana
Anant Raj Industries Ltd Sonepat, Haryana
Biocon Special Economic Zone Anekal Taluk, Bengaluru, Karnataka
Synefra Special Economic Zone Udupi Taluk, Karnataka
Manyata Embassy Business Park SEZ Bengaluru, Karnataka
Wipro Limited (Electronic City) Varthur Hobli, Electronic City, Bengaluru, Karnataka
Wipro Limited (Sarjapur) Varthur Hobli, Sarjapur Road, Karnataka
Infosys Ltd SEZ (Mangaluru) Bantwal Taluk, Dakshina, Kannada Dist, Karnataka
Infosys Ltd SEZ (Mysuru) Hebbal Industrial Area, District. Mysuru, Karnataka
Vrindavan Techvillage SEZ (Formerly MS Vikas Telecom Ltd) Bengaluru, Karnataka
Rmz Ecoworld Infrastructure Pvt Ltd (Formerly Adarsh Prime Projects Pvt Ltd) Devarabeesanahalli, Bhoganahalli And Doddakanahalli, Karnataka
Divyasree Technopark Kundalahalli, Krishnarajapuram, Karnataka
International Technology Park Ltd (ITPL) Bengaluru Karnataka
Cessna SEZ Bengaluru, Karnataka
Global Village (Formerly Tanglin SEZ) Pattengere/Mylasandra Villages, Karnataka
HCL Technologies Ltd Bengaluru District, Karnataka
Pritech Park SEZ (Primal Projects Ltd) Bengaluru, Karnataka
Bagmane SEZ Bengaluru North, Karnataka
Gopalan Enterprises Pvt Ltd (Global Axis-Hoodi) KR Puram, Whitefield Bengaluru, Karnataka
Karle Projects
Mangalore Special Economic Zone Karnataka
Kochi Petrochemicals Ernakulam District, Kerala
Vizhinjam Port of Trivandrum Sez Thiruvananthapuram District, Kerala
Kochi Refineries Ernakulam District, Kerala
Kiadb Pharmaceutical Special Economic Zone Alappuzha , Kerala
Fertilizers and Chemicals Travancore Cochin FACT Aluva Ernakulam District, Kerala
Ksidb SEZ Kannur – Textiles Kannur, Kerala
Ksidc Food Processing Special Economic Zone Samudravalli, Turavur , Kerala
KAL Aerospace SEZ, Kannur Mattanur , Kannur , Kerala
Keonics Adoor Village Thengamam And Prakoode, District Pathanamthitta, Kerala
Larsen and Toubro SEZ Ksidc Industrial Area, Aluva District Ernakulam , Kerala
Cochin Special Economic Zone Cochin, Kerala
Vallarpadam SEZ Vallarpadam, Kerala
Kinfra Film & Video Park (KFVP) Trivandrum, Kerala
Puthuvypeen SEZ
Kinfra (Food Processing) SEZ Kakkancherry Kerala
Infopark Kochi
Electronic Technology Park-1 Trivandrum
Electronics Technology Park-Ii (MS Electronics Technology Parks) Trivandrum
Ksitil Kollam Kollam
Electronic Technology Park-3 Trivandrum
Carborundum SEZ Kerala
Ksitil (Cherthala) Kerala
Kerala Industrial Infrastructure Development Corporation (Kinfra) Thrikkakara Village, Kanayannur Taluk, Ernakulam District, Kerala
Ksitil Kozhikode Kozhikode
Indore SEZ Sector-3, Pithampur District Dhar (MP)
Crystal IT Park SEZ (MP Audoyogik Kendra Vikas Nigam (Indore) Ltd) Indore In The State Of Madhya Pradesh
SEEPZ SEZ Mumbai, Maharashtra
Maharashtra Airport Development Company Ltd (Mihan SEZ ) Mihan, District Nagpur
Serum Bio Pharma Park SEZ 212/2, Off Soil Poonawala Rod, Hadapsar, Pune
Maharashtra Industrial Development Corporation, Aurangabad Shendre Industrial Area, District Aurangabad
Infosys Limited Rajiv Gandhi Infotech Park, Ph II, Village Mann, Taluka Mulashi, Pune
Wipro Ltd Maharashtra
Neopro Technologies Pvt Ltd SEZ (Formerly known as M/S Flagship Infrastructure Pvt Ltd) Village Hinjewadi Taluka Mulshi, Pune
The Manjri Stud Farm Pvt Ltd S No 209, Next to Satyapuram Society Pune – Saswad Road, Phursungi, Pune
Syntel International Pvt Ltd Talawade Software Park, District Pune
Magarpatta Township Development And Construction Company Ltd Magarpatta City Village, Hadapsar, Taluka Haveli, District Pune
Maharashtra Industrial Development Corporation, Hinjewadi, Pune Rajiv Gandhi Infotech Park, Ph III, Hinjewadi, Pune
Eon Kharadi Infrastructure Pvt Ltd Taluka Haveli, District Pune
Pune Embassy India Pvt Ltd Plot No 3, Rajiv Gandhi Infotech Park, Phase II, Hinjewadi, Taluka Mulshi, District Pune
Quadron Business Park Ltd (Formerly known as DLF Akruti Info Parks) Plot No 28, MIDC Rajiv Gandhi Infotech Park, Hinjewadi, Phase II District Pune
Hiranandani Business Park Pawai, Mumbai
Serene Properties Pvt Ltd Kalwa Trans Thane Creek Industrial Area, MIDC, District Thane
Wockhardt Infrastructure Development Ltd Shendre Industrial Area, District Aurangabad
Maharashtra Industrial Development Corporation SEZ – Nanded Krushnoor Industrial Area, Nanded District, Nanded
Khed Economic Infrastructure Pvt Ltd Kanhersar Taluka Khed, District Pune, Maharashtra
Wardha Power Company Ltd Wardha Growth Center, District Chandrapur
M/S Arshiya International Ltd Village Sai, Taluka Panvel, District Raigad
Gigaplex Estate Private Limited Gigaoplex, Plot No 05, MIDC Knowledge Park, Airoli, Navi Mumbai
Maharashtra Industrial Development Corporation, Kesurdi Satara Kesurdi Taluka Khandala, District Satara
Maharashtra Industrial Development Corporation SEZ, Phaltan, District Satara MIDC Phaltan, District Satara
Sunstream City Pvt Ltd (Formerly) Village Mulund, Taluka Kurla, Dist Mumbai Suburban and Village Kopari, Taluka Thane, District Thane
Orissa Industries Dev Cor IT SEZ Bhubaneswar
Vedanta Aluminium Limited Brundamal And Kurbaga Villages, Tehsil and District – Jharsuguda, Orissa
Ranbaxy Laboratories Ltd Plot No A-41, Focal Point, Mohali, Punjab
Quarkcity India Pvt Ltd Mohali
Jaipur SEZ Jaipur, Rajasthan
Mahindra World City (Jaipur) Ltd Jaipur, Rajasthan
Mahindra World City (Jaipur) Ltd Kalwara Village, Jaipur, Rajasthan
MEPZ Special Economic Zone Chennai
L&T Shipbuilding Kattupalli
Mahindra Chingleput
Nokia Sriperumbudur
Flextronics Technologies (India) Private Limited Sriperumbudur
Cheyyar SEZ Cheyyar
Synefra Construction Ltd (Suzlon Infrastructure Ltd) Coimbatore
AMRL SEZ Nanguneri Taluk, Tirunelveli District
Pearl City Cccl Tuticorin
Sipcot Oragadam
Sipcot Hi-Tech Sriperumbudur
Sipcot Ranipet
Sipcot Gangaikondan
Sipcot Perundurai
New Chennai Cheyyur
J Matadee Mannur Village
TCS Siruseri
Syntel Siruseri
Ig3 Infra Limited (Etl Infrastructure Services Limited) Thoraipakkam
Hexaware Technologies Limited Siruseri
Shriram Properties And Infrastructure Private Limited Chennai
Chil Coimbatore
DLF Info City Porur
Elcot Sholinganallur
Elcot Coimbatore
Estancia IT Park (Formerly known as L&T Arun Ecello) Chennai
Span Ventures Coimbatore
Eta Techno Navalur
Elcot Trichy
Cognizant Siruseri
Elcot, Ilandhakulam Ilanthaikulam
Tril Info Park Tarama
Ig3 Infra Ltd Uthukuli
NSL SEZ, Uppal Uppal
DLF Commercial Developers Ltd, Gachibowli Gachibowli
APIIC Ltd – Nanakramguda Nanakramguda
Wipro Limited, Gopannapally Gopannapally
Sundew Properties, Madhapur Madhapur
Stargaze Properties Pvt Ltd, RR Dist RR District
Serene Properties, Ghatkesar Ghatkesar
Jt Holdings Pvt Ltd, RR Dist RR District
Divyasree Nsl, Raidurga Raidurga, Gachibowli
Infosys Tech, Pocharam Pocharam
CMC Limited, Gachibowli Gachibowli
Phoenix Infoparks Pvt Ltd, Gachibowli Gachibowli
Hyderabad Gems SEZ Ltd, RR Dist RR District
M/S GMR Hyderabad Aviation SEZ Limited, Hyderbad Village Mamidipalli, Rr District
Fab City Spv (India) Pvt Ltd, RR Dist RR District
M/S Apiic Ltd., Adibatla, Ibrahim Patnam, RR Dist, Ranga Reddy District, AP
Apiic Pharma SEZ – JaDCherla JaDCherla
Tech Mahindra Limited (Satyam Computers), Bahadurpally Bahadurpally
Tech Mahindra Limited (Satyam Computers), Madhapur Madhapur
Maytas Enterprises SEZ Pvt Ltd, Gopannpally Gopanpally
Indu Techzone Pvt Ltd, Mamidipally Mamidipally
Lanco Hills Technology, Manikonda Manikonda
Wipro Limited, Manikonda Manikonda
TCSl Ltd, Adibatla Adibatla(Developer)
Navayuga Legala Estates Pvt Ltd, Serilingampally Serilingampally
Apiic Ltd Shameerpet RR District
OMICS International Chandanagar-Ameenpur Medak District
Noida Special Economic Zone Uttar Pradesh
Moradabad SEZ Moradabad, UP
Moser Baer SEZ, Greater Noida Greater Noida
Aachvis Softech Pvt Ltd Sector-135, Noida, Uttar Pradesh
HCL Technologies Noida
Wipro Ltd Greater Noida
NIIT Technologies Limited SEZ Plot No Tz-02, Sector-Tech Zone, ITES Park, Greater Noida, UP
Ansal IT City And Parks Limited Greater Noida
Seaview Developers Limited Sector-135, Noida, Uttar Pradesh
Arshiya Northern Ftwz Limited Khurja, Bulandshahr, Uttar Pradesh
Artha Infratech Pvt Ltd Plot No 21, Sector-Techzone – IV, Greater Noida
Falta Special Economic Zone Falta, West Bengal
Manikanchan SEZ, W Bengal Kolkata, West Bengal
Salt Lake Electronic City – Wipro, West Bengal Kolkata, West Bengal
ML Dalmiya & Co Ltd Kolkata
Unitech Hi-Tech Structures Ltd Rajarhat, Kolkata, West Bengal
Tata Consultancy Services Limited Rajarhat, Kolkata, West Bengal
DLF Limited Rajarhat, Kolkata, West Bengal

 

FAQ

What is SEZ full form?

SEZ stands for special economic zone.

What is an SEZ in India?

SEZ is a special, demarcated geographical region, which has different economic laws to promote investments.

What is the difference between SEZ and EPZ?

A special economic zone (SEZ) is an area selected by the government for development and has distinct laws that are business-friendly, to manufacturing, service or trading establishments. An export processing zone (EPZ) is similar to an SEZ but is designed to help manufacturing companies to produce goods for export.

(With inputs from Surbhi Gupta)

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